Horton Company Produces and Sells Two Products: Round and Square

question 29

Multiple Choice

Horton Company produces and sells two products: round and square tables. In August 20x0, the budget projected the following for 20x1:
The tables are manufactured using the following direct materials:

Budgeted data for 20x1 direct materials are:

Budgeted data for 20x1 Direct labour and overhead are:

The cost of ending finished goods inventory of round tables for 20x1 is:

• A)$662,500
• B)$622,500
• C)$562,500
• D)$530,000

Recognize the differences between push and pull production systems.

Learn how to calculate the ending balance in finished goods inventory.

Understand the impact of lean principles on reducing waste and its importance to the triple bottom line.

Understand the components of a simple regression model and the meaning of its parameters.

---

Definitions:

Adjustment Recognition

The process of incorporating adjustments into financial statements for more accurate representation of financial positions or to reflect specific accounting standards.

Equity Profits

Profits that result from an investor's share in the earnings of an equity-accounted investee, reflecting the investor's ownership interest in the investee.

Dividend Revenue

Income earned from owning shares in a company that pays dividends out of its profits to shareholders.

Investment Carrying Amount

The value at which an investment is recognized in the balance sheet after deducting any impairment or amortization.